That is the message from council leaders who say the country is facing the lowest ever tax increases this April.

And at an average of 4.6 per cent, Wales has been hit by lower rises than in England, where rate payers are facing an average increase of 6.5 per cent, according to the Welsh Local Government Association (WLGA).

Council taxes in Wales are currently around #200 less on average than in England.

Russell Goodway, WLGA financial spokesman and leader of Cardiff council, where council tax is set to increase by 2.9 per cent, said: "Local authorities have managed to set their budgets, during what is a particularly challenging financial period, with the lowest ever increases on council tax.

"This has been achieved following mature dialogue between councils and the assembly government, which from the outset resisted the temptation to threaten councils with capping."

He added: "We do believe that the assembly government's spending review and the new balance of funding review will provide a fairer deal for local government, and in turn a fairer deal on council tax- payers."

WLGA leader Sir Harry Jones said: "This low increase is especially welcome given earlier concerns that 2004 would be a particularly difficult year because of the tight financial settlement.

"The assembly government did provide additional support but this did not go as far as local authorities had argued was necessary.

"Councils, therefore, have to face the difficult choice between keeping council tax bills low and maintaining services."